A newly submitted proposal could significantly enhance the XRP Ledger’s automated market maker system by introducing flexible pricing curve options designed to better handle the fast moving nature of crypto markets.
The draft proposal, titled “AMM Swappable Curves,” was submitted to the XRPL Standards repository on May 26 by Roman Thpt and Denis Angell. It is currently listed as a draft amendment and seeks to expand upon XLS 30, the existing AMM framework on the XRP Ledger.
New Flexibility for XRPL Liquidity Pools
The proposal aims to move XRPL’s automated market maker beyond its current single constant product model by introducing a modular curve architecture.
If approved, users launching AMM pools would be able to choose from multiple pricing curve models at the time of creation.
The initial curve options outlined in the proposal include:
• The existing constant product model currently used on XRPL
• A concentrated liquidity model similar to Uniswap v3
• A StableSwap inspired model optimized for correlated assets such as stablecoins
The proposal also mentions future support for a weighted Balancer style curve as well as a fully programmable smart AMM framework.
Why the Proposal Matters
The main objective behind the amendment is to improve capital efficiency and increase market flexibility across the XRP Ledger ecosystem.
Under the current XLS 30 system, liquidity is distributed across the entire price range, which can reduce efficiency for assets that usually trade within tighter price bands.
By introducing concentrated liquidity, liquidity providers would gain the ability to focus their capital within selected price ranges, potentially improving returns and reducing inefficiencies.
The StableSwap style model would also offer smoother and more efficient trading for assets that maintain closely linked values, such as stablecoins.
Backward Compatibility Remains Intact
The proposal is designed to remain fully compatible with existing AMM pools already operating on XRPL.
Current pools would continue using the standard constant product curve, while newer curve models would operate under separate ledger keys. This structure would allow several AMM pools for the same trading pair to exist simultaneously, each using different pricing mechanisms.
If implemented, the upgrade could make XRPL’s native AMM system far more competitive with modern decentralized exchange architectures while giving developers more advanced tools to adapt to varying market conditions across the crypto sector.#crypto#cryptonewshttps://coinsignals.net https://t.me/coinsignalpublic
